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BE23-3 Novak Corporation is preparing its 2012 sta...




BE23-3 Novak Corporation is preparing its 2012 statement of cash flows, using the indirect method. Presented below is a list of items that may affect the statement. Using the code below, indicate how each item will affect Novak?s 2012 statement of cash flows. Code Letter -------------------------------------------------------------------------------- Effect -------------------------------------------------------------------------------- A Added to net income in the operating section D Deducted from net income in the operating section R-I Cash receipt in investing section P-I Cash payment in investing section R-F Cash receipt in financing section P-F Cash payment in financing section N Noncash investing and financing activity Items _____(a) Purchase of land and building. _____(j) Increase in accounts payable. _____(b) Decrease in accounts receivable. _____(k) Decrease in accounts payable. _____(c) Issuance of stock. _____(l) Loan from bank by signing note. _____(d) Depreciation expense. _____(m) Purchase of equipment using a note. _____(e) Sale of land at book value. _____(n) Increase in inventory. _____(f) Sale of land at a gain. _____(o) Issuance of bonds. _____(g) Payment of dividends. _____(p) Retirement of bonds payable. _____(h) Increase in accounts receivable. _____(q) Sale of equipment at a loss. _____(i) Purchase of available-for-sale investment. _____(r) Purchase of treasury stock.


Paper#6785 | Written in 18-Jul-2015

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